Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer, the Hon. Michael Sukkar MP)Chapter 7 Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Schedule 1 - International monetary agreements
7.1 Schedule 1 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
7.2 Schedule 1 to the Bill amends the IMA Act to authorise the Minister to enter into an agreement with the IMF for Australia to provide loans to the IMF.
7.3 These amendments would establish a clear legislative framework for entering into new loan agreements with the IMF without the need for further legislative amendments. The amendments would also introduce a standing appropriation to fund Australia's obligations to pay amounts to the IMF under such an agreement.
7.4 Schedule 1 to the Bill also amends the IMA Act to provide that the Treasurer may, by legislative instrument, give notice of an amendment or renewal of the New Arrangements to Borrow by a decision of the Executive Board of the Fund.
7.5 The amendments also make provision for a specific update to the current definition of the New Arrangements to Borrow in the IMA Act to include the IMF Executive Board's decision (Decision No. 16645-(20/5), dated 16 January 16, 2020).
Human rights implications
7.6 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
7.7 This Schedule is compatible with human rights as it does not raise any human rights issues.
Schedule 2 - Deductible gift recipients - new specific recipients
7.8 Schedule 2 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
7.9 Schedule 2 to the Bill amends the ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:
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- The Samuel Griffith Society Inc. (ABN 50 670 165 165);
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- Friends of Myall Creek Memorial Incorporated (ABN 87 040 729 116); and
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- Toy Libraries Australia Inc. (ABN 40 557 982 129).
Human rights implications
7.10 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
7.11 This Schedule is compatible with human rights as it does not raise any human rights issues.
Schedule 3 - International financial assistance
7.12 Schedule 3 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
7.13 Schedule 3 to the Bill updates existing provisions of the IMA Act to ensure that the Treasurer can, on behalf of Australia, continue to enter into agreements with other countries to provide them with financial assistance in support of a program of the IMF.
7.14 These changes remove the existing requirements that the IMF make a request to Australia and to at least one other government or organisation. The amendments ensure that Australia can continue to provide financial assistance to other countries in light of the IMF's change in policy (to no longer make such requests), while retaining the underlying policy parameters that any financial assistance by Australia is provided with the assurance of IMF oversight of the recipient's policies and actions, and in support of broader economic reforms.
Human rights implications
7.15 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
7.16 This Schedule is compatible with human rights as it does not raise any human rights issues.
Schedule 4 - Extending the instant asset write-off
7.17 Schedule 4 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
7.18 Schedule 4 to the Bill amends the income tax law to allow a business with an aggregated turnover for the income year of less than $500 million to immediately deduct the cost of each depreciating asset costing less than $150,000 (instant asset write-off) for an asset first used or installed ready for use up to 31 December 2020.
7.19 Schedule 4 also amends the income tax law to allow a larger business (with an aggregated turnover for the income year of $10 million or more and less than $500 million) that has adopted a substituted accounting period to access the $150,000 instant asset write-off for an asset first used or installed ready for use for a taxable purpose from 12 March 2020 until 31 December 2020. Equivalent amendments are also made to allow an eligible business that has adopted a substituted accounting period to access the $30,000 instant asset write-off prior to 12 March 2020 regardless of when their income year ends.
Human rights implications
7.20 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
7.21 This Schedule is compatible with human rights as it does not raise any human rights issues.
Schedule 5 - Reduction in 2020-21 PAYG instalments
7.22 Schedule 5 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
7.23 Schedule 5 to the Bill will amend the TAA 1953 to reduce the GDP adjustment factor for the 2020-21 income year to nil. The GDP adjustment factor is applied by the Commissioner to work out the amount of PAYG instalments payable by a taxpayer in certain circumstances.
Human rights implications
7.24 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
7.25 This Schedule is compatible with human rights as it does not raise any human rights issues.
Schedule 6 - Cash Flow Boost
7.26 Schedule 6 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
7.27 Schedule 6 to the Bill makes minor amendments to change the scope of the payments for which an entity can receive the cash flow boost under the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020. The amendments clarify that these payments include amounts that are subject to withholding under the special withholding obligations applying to certain personal service income payments under Division 13 in Schedule 1 to the TAA 1953.
Human rights implications
7.28 This Schedule does not engage any of the applicable rights or freedoms.
7.29 While the amendments apply retrospectively, they are wholly beneficial to affected entities, making them entitled to the cash flow boost or increasing the amount of the cash flow boost they are to be paid.
Conclusion
7.30 This Schedule is compatible with human rights as it does not raise any human rights issues.